Definition of Financial Year
A financial year is a period of twelve months, used by government, business, and other organizations in order to calculate their budgets, profits, and losses. Financial year is often used in business to compare with the calendar year.
Financial year can be abbriviated as FY. example Financial year 2020-21 can be called as FY 2020-21.
Assessment Year is nothing but checking previous year balance sheet i.e. record of taxes liability done during previous FY.
Indian Financial year term no where mentioned but it is colonial practice.
so for chaning this scenario new independent government had establish one committee under Dr. Meghanad Saha in 1952, who submitted its report in 1955.
Following are the important International Institutions and there FY
1. International Monetary Fund – 1st May to 30th April
2. World Bank – 1st July to 30th June
3. Reserve Bank of India – 1st July to 30th June
4. Regional Rural Banks – 1st April to 31st March
5. Economic year – 1st April to 31st March
6. Cooperative societies year – 1st July to 30th June
7. Economic year of Maharashtra – 1st August to 31st July